"RBI (during his tenure) issued lot of things to increase competition in the banking sector which include giving 23 bank licenses. There were new banks, payment banks, small finance banks," Raghuram Rajan said.

When Raghuram Rajan took charge as governor of the Reserve Bank of India in September 2013, the rupee was in free fall, inflation was high, India had a large current account deficit, and exchange reserves were falling.

At present there seems to be a consensus building up on the need of creating a government owned bad bank, though the former governor of Reserve Bank Of India, Raghuram Rajan was not in favour of such an entity.

Mr Acharya's primary research interests are in the regulation of banks and financial institutions, measurement of systemic risk and understanding the nexus between sovereign and financial sector credit risks.